Business Daily Kenya:
CREDIT: Standard Chartered Bank chief economist for Africa along with also also the Middle East has joined some other institutions in calling for the scrapping interest rate cap to ensure sustainable economic growth.
Raza Khan said interest rate control has had an adverse impact on the economy, dragging down growth, adding: “Kenya has lost a lot of dynamism due to the caps.”
“of which is actually time the government got a realistic view on the impact of interest rate caps on the economy in general having a view to resolving the matter in order of which of which deals with some other external risks,” she said.
Khan said although rate capping is actually a big hindrance to economic growth, of which will take sometime after removal before the country can start seeing any meaningful impact on the economy. “Loan rate cap complicates monetary policy transmission.
of which needs to be removed faster to have a fiscal rebounding,” she said during a media briefing on Kenya’s economic outlook for 2018 in Nairobi yesterday. Khan said the absence of credit to the private sector have had an adverse impact on the economy along with also also even the people who depend on credit expansion to create jobs.
She echoed what Central Bank of Kenya Governor, Patrick Njoroge said early This specific week of which the rate capping has resulted in a credit crunch as banks ration credit had slowed down the economy.
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StanChart economist wants rate cap lifted